*Blog postings do not necessarily reflect the views of Fantini Research

By Steve Norton
CEO, Norton Management

Connecticut Sports Betting Hinges on Tribes

My comment:

Connecticut is right to develop a form of sports betting, that will effectively compete with illegal overseas sites, and bookmakers. This would ensure fair odds, payment of large winning bets, and working with the various sports leagues to rout out any "Black-Socks" type scandals.

Plus, legal sports betting would provide jobs to CT residents, a small amount of tax revenue to CT, and some income to gaming operators, preferably at live gaming sites, rather than online.

A study by Spectrum Gaming commissioned by the MLB and NBA suggests a 0.25 percent royalty fee is only viable in states that would tax sports betting revenues at less than 15 percent and with operator EBITDA margins of at least 20 to 25 percent.

The study, expected to be released soon, also states sports betting would need to be widely available through retail and mobile channels to support the royalty fee.

League involvement in sports betting with a royalty fee would give bettors a higher degree of comfort and therefore could lead to higher revenues, the study suggested.

Unblockable has received significant interest from NFL and NBA teams since the launch of free-to-play sports prediction app HotStreak at a New Orleans Pelicans’ NBA game.

Team interest includes licensing the game or partnering with Unblockable to bring the game to their fans.

HotStreak eliminates sports betting jargon and presents prop predictions with a user-friendly design. Players can choose up to three predictions and points are added or subtracted based on whether they get the predictions right.

Unblockable, which originally had ties to cryptocurrency but has pivoted to the free-to-play sports prediction space, raised $5 million dollars from Shasta Ventures and Lightspeed Venture Partners last May.

The Massachusetts Gaming Commission will take its time deciding on Wynn Resorts’ suitability, but will begin deliberations immediately, Chair Cathy Judd-Stein said.

The commission closed out three full days of licensing suitability hearings in which current executives admitted the company made mistakes but pointed to all the progress and changes it has made since, and the new policies in place to prevent such problems in the future.

Key questions remain:

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